Simple Business Plan Template

Here's a Simple Business Plan Template for Entrepreneurs

Think you have a great idea for a business? That best way to find out is to do your research and write a business plan to see if your idea is feasible. The simple business plan template presented here will get you started on preparing a plan for your new enterprise.

The resulting document can serve as the blueprint for your business and be supplied to financial institutions or investors if debt or equity financing is needed to get your business off the ground.

Pros of using a business plan template. A good business plan template can help you get your thoughts organized. It can provide a guideline so you’re not stuck looking at a blank page trying to figure out where to start. Plus, it can show you the general layout of a standard business plan.

A great business plan template will also provide instructions for each step of your plan and show you what an investor-ready and SBA-approved business plan should look like.

Cons of using a business plan template. While there are benefits to using a business plan template, depending on your situation it may not be the best way to complete your plan. There is still going to be a lot of work involved—for instance, not only do you have to complete the financial spreadsheets, but you have to do the math yourself.

You’ll also have to know enough about the process to be sure you’re getting the numbers in the right place. So, if you don’t already know what you’re doing with the numbers, the process of writing your business plan may not be that much easier with a template.

Finally, merging data from Excel spreadsheets into your Word document is harder than it looks.

It’s not easy to keep everything completely up-to-date as you make changes to your numbers, and integrating the right charts and graphs into your business plan is harder than it seems.

Business Plan Templates Make Sense

However, if you’re new to business planning and just want to get a sense of what a plan looks like and want to get the process started quickly and cheaply, then downloading a free template is the best way to get started.

Do I Need a Simple or Detailed Plan?

A corporate business plan for a large organization can be hundreds of pages long. However, for a small business, it's best to keep the plan short and concise, especially if you intend to submit it to bankers or investors. Capping your plan at 30 pages should be sufficient unless you need to include photos of products, equipment, logos, business premises or site plans, etc. Potential money lenders and investors want solid research and analysis; not long, wordy descriptions.

How to Use the Template

The enclosed sample template is broken into sections as described in the table of contents. Each section of the template can be copied into a Word, Excel or similar office document by selecting the text and using copy/paste.

If using Windows, outline the text to be selected with the mouse and hit CTRL+C to copy and CTRL+V to paste.

Simple Business Plan Template

Title Page

Enter your business information including the legal name, address, etc. If you already have a business logo you can add it at the top or bottom of the title page.

Business Plan

For"Business Name"

"Date"

"Business Address""Phone""email""website"

If addressing to a company or individual include:

Presented to:"Name""Company or Financial Institution"

1. Table of Contents:

Table of Contents

1.

2.

3.

4.

5.

6.

7.

8.

Table of Contents

Executive Summary.............................

Business/Industry Overview.................

Market Analysis and the Competition...

Sales and Marketing Plan.........................

Ownership and Management Plan........

Operating Plan.....................................

Financial Plan......................................

Appendices and Exhibits......................

Page#

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Section 1: Executive Summary

The executive summary goes near the beginning of the plan but is written last. It provides a short, concise, and optimistic overview of your business that captures the reader's attention and creates a need to learn more. The executive summary should be no more than 2 pages long, with brief summaries of other sections of the plan. See How to Write the Executive Summary of the Business Plan to get you started.

Section 2: Business/Industry Overview

Section 2: Business/Industry Overview

· Describe the overall nature of the industry, including sales and other statistics. Include trends and demographics, and economic, cultural, and governmental influences. If you need help, an Example of the Industry Overview will be useful.

Section 3: Market Analysis and the Competition

In this section, you need to demonstrate that you have thoroughly analyzed the target market and that there is enough demand for your product or service to make your business viable. The competitive analysis includes an assessment of your competition and how your business will compete in the sector. You can turn to How to Write the Competitors Analysis Section of the Business Plan for help. The Target Market description and Competitive Analysis portions can be two separate sections in the plan or combined as shown:

· Estimate the overall size of the market and the units of your product or service the target market might buy, potential repeat purchase volume, and how the market might be affected by economic or demographic changes.

· Estimate the volume and value of your sales in comparison with any existing competitors. It helps to summarize the results in table form as in the following example which demonstrates that there is a gap in the high-quality sector of the market that your business intends to target.

Business

Competitor A

Competitor B

Your Business

Est. Annual Revenue

$1,000,000

$600,000

$500,000

Employees

20

10

5

Price

Average

High

High

Quality

Low

Average

High

· Describe any helpful barriers to entry that may protect your business from competition, such as access to capital, technology, regulations, employee skill sets, location, etc.

Section 4: Sales and Marketing Plan

Product or Service Offerings

· Describe your product or service, how it benefits the customer, and what sets it apart from competitor offerings (i.e., what is your Unique Selling Proposition?).

Pricing Strategy

· Describe how you intend to price your product or service. Pricing has to be competitive to attract customers but high enough to cover costs and generate a profit. Pricing can be based on markup from cost, value to the buyer, or in comparison with similar products/services in the marketplace. Breakeven analysis can help determine sales and pricing for profitability. You'll also want to take a look at Pricing Strategies to Increase Profitability.

Sales and Distribution

· Describe how you will distribute your products to the customer (if applicable). Will you be selling wholesale or retail? What type of packaging will be required? How will the product(s) be shipped? What methods will be used for payment?

Advertising and Promotion

· List the different media you will use to get your message to customers (e.g. business website, email, social media, traditional media like newspapers, etc.). Will you use sales promotional methods such as free samples, product demonstrations, etc.?

Human Resources

· Include an advisory board as a supplemental management resource (if applicable).

Section 6: Operating Plan

The operating plan outlines the physical requirements of your business, such as office, warehouse, retail space, equipment, inventory and supplies, labor, etc. For a one-person, home-based consulting business the operating plan will be short and simple, but for a business such as a restaurant or a manufacturer that requires custom facilities, supply chains, specialized equipment, and multiple employees, the operating plan needs to be very detailed. The Operating Plan Section of the Business Plan will provide you with additional information about your operating plan.

Section 6: Operating Plan

Development (if applicable)

· Explain what you have done to date in terms of identifying possible locations, sources of equipment, supply chains, etc. Describe your production workflow.

Production:

For manufacturing, explain how long it takes to produce a unit and when you'll be able to start producing your product or service. Include factors that may affect the time frame of production and how you'll deal with potential problems such as rush orders.

Facilities

· Describe the physical location of the business including location, land, and building requirements. Include square footage estimates with room for expansion if expected. Include the mortgage or leasing costs. Also include estimates of expected maintenance, utilities, and related overhead costs. Include zoning approvals and other permissions necessary to operate your business.

Staffing

· Outline expected staffing needs and the main duties of staff members, especially the key employees. Describe how the employees will be sourced and the employment relationship (i.e., contract, full-time, part-time, etc.). Detail any employee training needed and how it will be provided.

Equipment

· Include a list of any specialized equipment needed. Include the cost and whether it will be leased or purchased and the sources.

Supplies

· If your business is manufacturing, retail, food services, etc. include a description of the materials needed and how you will reliably source them. Give descriptions of major suppliers if needed. Describe how you will manage inventory.

Section 7: Financial Plan

The financial plan section is the most important section of the business plan, especially if you need debt financing or want to attract investors. The financial plan has to demonstrate that your business will grow and be profitable. To do this, you will need to create projected income statements, cash flow statements, and balance sheets. For a new business, these are forecasts. A good rule of thumb is to underestimate revenues and overestimate expenses.

Section 7: Financial Plan

Income Statements

· The Income Statement shows your projected Revenues, Expenses and Profit. Do this on a monthly basis for at least the first year for a startup business.

Cash Flow Projections

· The Cash Flow projection shows your monthly anticipated cash revenues and disbursements for expenses. It is important for demonstrating that you can manage your cash flow and will be a good credit risk.

Balance Sheet

· The Balance Sheet is a snapshot summary of the assets, liabilities, and equity of your business at a particular point in time. For a startup, this would be on the day the business opens. Note that a new business will have no accounts receivable entries on the balance sheet. Note also that the Balance Sheet is much simpler for unincorporated businesses without employees. Income tax, pensions, medical, etc. are only applicable to incorporated businesses, as are Earnings/Retained Earnings.

Breakeven Analysis

· Including a breakeven analysis will demonstrate to financiers or investors what level of sales you need to achieve to make a profit. You might need to figure out How to Do a Breakeven Analysis before tackling this area.

Section 8: Appendices and Exhibits

The appendices and exhibits section contains any detailed information needed to support other sections of the plan.